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The development of GDR, 1961-85 - economic stabilisation after 1961 -…
The development of GDR, 1961-85 - economic stabilisation after 1961
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'normalisation''
severe economic problems appeared and the skilled workers made the best of a bad situation and took advantage of the welfare provision in the GDR
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opposition
however many workers feared to protest due to consequences, many remembered 1953 revolt and its consequences
the protest took the form of defacement posters, mass whistling, covering their ears and getting drunk, very petty forms of protest
whilst some did not see a need to protest because of the living conditions whilst not aFRG level they were still better than the rest of Eastern Euope
usually local unofficial strikes in the issue of work norms, poor equipment, health and safety and low pay rates - portrayed as political by local authorities
the New Economic System, 1963-68
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aimed to improve efficiency by developing producers, managers would be driven by initiative and technology, not ideology
Ulbricht believed in bonuses and incentives and saw that the disregard for quality over quantity which was inefficient and expensive
central planning was reduced ao managers could look from a wider perspective, however, managers still had control over targets set, resources and setting prices
SED and Ulbricht's repression could not continue and had to improve living standards in order to gain support for the regime
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at the beginning of the 1960s, there was an economic failure, no profits but lost money instead
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opposition
at the Central Planning Plenum, 1964 people feared the bonuses and incentives were making 'socialist millionaires'
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many party members opposed the NES as they feared it weakened central control and the communist ideology
weaknesses
the labour force was largley unskilled and could not adapt to the new ways of working as they had Neve had to worry about quality
prices still set centrally were too low fr the quality produced so the lack of profit had to be accepted or produce less
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the Economist Socialist System, 1968-71
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in 1960 only 3.2% of the GDR population owned a car, by 1970 this had risen to 15.6% which in comparison to other communist countries was favourable
however, Ulbricht continued with it renaming it the ESS
however, there were still unexplained shortages and people carried 'perhaps' bags in hope of something unexpected being on sale
Krushchev was kicked out of power in 1964 his successor were more hardline and less supportive of the NES
membership of COMECON
GDR became so dependent on the USSR for oil it was 87% of all GDR's oil, this was bad as seen in the oil crisis in 1973
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from 1957 the GDR was asked to ficus on the development of lignite or brown coal, which caused huge environmental issues
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due to the USSR faulty economy in the 1970s and 1980s COMECON led to shortages of consumer goods and difficultys in supply, led to the GDRs foreign debts rising
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the economy in the 1970s
to be advanced, it needed to produce more consumer goods but these were complex and expensive to produce
whilst the economy is centrally controlled it was hoped that production should lie with middle management
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collective farms became larger but the total number of collective farms dropped between the 1970s and 1980s
GDR saw itsekf as an advanced socialist economy and its main goal was to improve the standard of living
examples of growth rates
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GDR therfore, did at least develop a modern industrial society
however, the economy could not keep up with these percentages
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economic problems
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GDR imports rose by 34% and exports only half of that so the deficit only grew this was the biggest undermining problem of the economy
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